Post COVID-lockdown, things are getting back to normal and many people have started working from offices. However, people are still avoiding public transport to practice social distancing and avoid the coronavirus infection. Commuters are using their private cars. And people who don't own a car are either buying a used car or taking a car subscription or lease.
Due to turbulent economy and sluggish businesses, people are reluctant to shell out big money for a new car. Hence, pre-owned cars have become the first choice for majority of car buyers. To support the demand, banks are also offering auto loans on used cars at discounted interest rates. You can easily get a loan on an up to 5 years old car.
However, before signing up for a loan, you should do proper comparison and market research get the best interest rates and repayment terms. You should look for things including applicable interest rate, maximum loan amount, tenure, re-closure charges, processing fees, EMI, documentation, and more.
While planning to buy a pre-owned car, you should also keep in mind that banks will not offer 100% on road price of your car as the loan amount.
Some banks also offer pre-approved loan offers. Check on that to know whether you are eligible or not. Pre-approved loan often comes with concessions if you already have a home loan with a particular bank.
Also consider additional costs including maintenance, insurance, and parking.
To help you find the best interest rates on your used-car loan, CarInfo has consolidated the list of used-car loan interest rates offered by banks. Do compare them to get the best deal.
Let us check out.
Interest Rates Offered Banks on Used Car Loans
|Bank of India||7.35%|
|Punjab National Bank||8.30%|
|State Bank of India||9.20%|
|Indian Overseas Bank||9.55%|
|Punjab & Sind Bank||9.85%|
|Bank of Maharashtra||10.20%|
Check out these interest rates along with other terms of conditions to get the best deal on your pre-owned car loan.